United India Insurance Co. Ltd vs Rakesh Kumar Arora & Ors

The Supreme Court addressed the liability of an insurance company under the Motor Vehicles Act, 1988, specifically under Section 173, in a case where the driver was a minor without a valid driving license at the time of the accident. The Court held that the owner of the vehicle could not be held liable for breach of contract as there was no evidence of willful default or consent in allowing the minor to drive. The Division Bench of the Punjab and Haryana High Court's dismissal of the Letters Patent Appeal was upheld, affirming the single judge's ruling that the insurance company was not liable for compensation due to the circumstances surrounding the accident.